Monday, August 28, 2023

😡Markets Likely to Trend Lower as Fed Looks to Keep Rates Higher

Good morning. Federal Reserve Chairman Jerome Powell didn't say anything too new on Friday at the...
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.

Good morning. Federal Reserve Chairman Jerome Powell didn't say anything too new on Friday at the central bank's annual retreat in Jackson Hole, Wyoming. He reiterated that the central bank has a 2 percent inflation target. And that they may need to raise interest rates further to hit that target.

While the speech wasn't overly hawkish, it wasn't dovish either. That helped stocks regain some of Thursday's big drop. But it may not be enough to resume a market uptrend.

Traders will likely continue to have some good downside opportunities in the coming weeks, and investors can start looking for stocks to buy after a slightly further decline in stocks.

Now here's the rest of the news:

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MARKETS
DOW 34,346.90 +0.73%
S&P 4,405.71 +0.67%
NASDAQ 13,590.65 +0.94%
*As of market close
Markets moved higher on Friday, following the latest speech from Fed Chair Jerome Powell.
Oil rose 1.3 percent, closing at $80.06 per barrel.
Gold dipped 0.3 percent, last going for $1,942 per ounce.
Cryptocurrencies traded slightly lower, with bitcoin at $25,969 at the stock market close.

Today's TOP TIPS
This Wealth-Compounding Stock Could be Ready to Break Higher
Great stocks tend to only look great over time. Over shorter periods, stocks can trade lower, or even sideways for prolonged periods of time. While that can be frustrating at first, taking advantage of that trend over time can lead to massive, market-beating gains.

That's especially true for industry-leading stocks, which may sometimes stay out of favor with the market for some time before they finally start to make their next rally higher.

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Insider Activity Report: Helca Mining (HL)
George Johnson, a director at Helca Mining (HL), recently bought 8,500 shares. The buy increased his stake by 49 percent, and came to a total cost of $34,585.

This buy marks the only insider activity at the company over the past two years. Company officers have been granted shares of stock repeatedly over the past few years, but none have sold off their positions yet.

» FULL STORY

Unusual Options Activity: The Walt Disney Company (DIS)
Media conglomerate The Walt Disney Company (DIS) hit a new 52-week low last week. One trader sees shares declining further over the next month.

That's based on the September 29 $75 puts. With 32 days until expiration, 10,330 contracts traded compared to a prior open interest of 134, for a 77-fold rise in volume on the trade. The buyer of the puts paid $0.55 to make the bearish bet.

» FULL STORY

IN OTHER NEWS
Mortgage Rates Hit Highest Level Since 2001

30-year fixed rate mortgages hit 7.23 percent last week. That's the highest level since 2001. The high rates are keeping prospective buyers on the sidelines. It's also keeping prospective sellers, with mortgages in the 3-4 percent range on average, also on the sidelines.
Home Insurance Costs Eating into Home Sales

Home insurance costs are rising rapidly, particularly in coastal climates. Rates in hurricane-prone Florida have tripled over the past five years on average, according to industry data. The high costs of insuring properties in high risk areas will likely continue to fuel higher premiums in the years ahead.
Container Ships Idle Amid Excess Stock

Excess stock in the apparel and electronics industry is keeping container ships idle at Asian ports, according to industry data. There were 13 cancelled container ship sailings between Europe and Asia in July as well. Part of the reason is increasingly complex supply chains, with retailers sourcing their products from multiple locations in Asia.
EU Enforcing New Rules for Tech Companies

The European Union's Digital Services Act (ACT) is going live. The law, passed last year, adds in a number of regulations to avoid spreading misinformation or disinformation online, outlines possible harms to mental health, and generally looks to add transparency to tech platforms such as social media sites.
Meta Shutting Down Messenger Lite for Android Next Month

Meta Platforms (META) has announced it will shut down Messenger Lite for Android users on September 18. The app offers messenger services only, rather than the full suite of Facebook products. Users will still be able to use the messenger service on the Facebook app.

S&P 500 MOVERS
TOP
HAS 6.262%
WDAY 5.619%
INTU 4.387%
ISRG 4.28%
FTRE 4.135%
BOTTOM
ULTA 3.586%
WBD 3.583%
PODD 2.907%
DISH 2.729%
NVDA 2.419%

Quote of the Day
The tech story is coming back, which is ironic because normally when real yields go up, valuations get hit and the more richly valued stocks do worse. We think the economy is actually running fairly resilient right now.
- Sonu Varghese, director at Carson Group, on why the economy is holding up strongly right now given the strength in the tech space even as interest rates have soared higher in the past 18 months.

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